d. Refer to your answer to part a when total revenues were $160,000. Calculate the firm's operating income (or loss) if unit selling price and variable expenses do not change, and total revenues
1. Increase by $18,000.
2. Decrease by $12,000.

Solution Summary

The solution is provided in a separate excel file attached. It contains all parts of these income statement and operating income questions with workings and explanatory notes given. Some answers are verified with an alternative methods.